The crux, state Sen. Dave Koehler said, is that an impending spike in property taxes could be enough to deter small businesses from rebuilding, which would be a greater loss to the community and tax base than the effect of slowed tax increase.

“This is a way to stabilize businesses so that they remain a viable part of that community. If a business goes out of business because they can’t afford that hit then everybody loses,” the Peoria Democrat said. “Those businesses are the most vulnerable. They don’t have the deep pockets.”

The bill aims to protect small businesses from skyrocketing property taxes in the wake of destructive tornadoes.

State Sen. Mike Frerichs drafted the bill over concerns for small businesses such as a family-owned hardware and lumber store in Champaign County following damage from the Nov. 17 tornadoes. Those tornadoes also affected Tazewell and Woodford County.

“Their facility was badly damaged, and being in a small town competing with some of the big chain home improvement stores has not been easy for them. When they looked at what rebuilding did to their property taxes, they said we can’t afford that,” Frerichs said. “When a builder refuses to rebuild on that scar, that’s not what we want.”

SB 3259 would limit property tax increases to 4 percent annually for 15 years, or when the full fair tax value is reached, for small businesses who choose to rebuild in the existing footprint if destroyed by a tornado in or after 2013. The bill is similar to a property tax freeze for home owners enacted into law following the 2012 tornado in Harrisburg.

To qualify, businesses must employ fewer than 50 people, would be required to rebuild within two years of the natural disaster and limit new construction to no more than 110 percent of the square footage of what was destroyed.

Richard LaHood, general manager of LaGondola, which will be torn down next week after sustaining major tornado damage, said that the potential increase in property tax wasn’t a deterrent when he and his father, owner Dick LaHood, made the decision to rebuild.

“Not at all, not in Washington,” LaHood said. “Washington has been fair with us in the past, and I’m confident they’ll be fair with us in the future.”

LaHood also said that all 15 employees from the Washington location were almost immediately placed in positions within the same pay scale at one of the restaurant’s other area locations.

Page 2 of 2 - Legislators supported the bill to protect businesses as job providers and economic contributors in their communities, especially in small communities.

“This is just saying that you’re not going to be docked because you did something that everybody wants you to do, which is rebuild on your own parcel,” State Rep. Mike Unes, R-Pekin, said. “And there’s a structure in place to ramp up and get to the new level over time.”

The original bill would have applied to victims of any natural disaster including fire, flood, earthquake, wind, storm or extended inclement weather, but an amendment made by House sponsor state Rep. Chad Hays, R-Danville, limited the scope to businesses affected by tornadoes.

The bill was passed unanimously by the Illinois House on Thursday, and now requires only a concurrence vote from the Senate to approve several amendments, which is expected Friday. If passed, the law would take effect immediately.

Laura Nightengale can be reached at 686-3181 or lnightengale@pjstar.com. Follow her on Twitter @lauranight.